M/s. NIKHIL ALOYS STEELS P. LTD., MUMBAI V. ACIT CENT. CIR. -36/N-3, MUMBAI

ITA 6964/MUM/2006

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2233 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 1994-1995
• Appeal Filed On: 21-12-2006
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AARSI PRASAD S S RANA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 6964/M/2006 ASSESSMENT YEAR: 1994-95 M/S NIKHIL ALLOYS STEELS PVT. LTD., APPELLANT 501, GARDEN VIEW, GULMOHAR PARK, GULMOHAR ROAD, JVPD SCHEME, MUMBAI 400 049. VS. ASSTT. COMMISSIONER OF INCOME-TAX, RESPONDENT CENTRAL CIRCLE, 36/N-3, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. APPELLANT BY : MR. RATAN SAMAL RESPONDENT BY : MR. AARSI PRASAD/ S.S. RANA ORDER PER A.L. GEHLOT, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT (A)- III, MUMBAI, PASSED ON 27.10. 2006 FOR TH E ASSESSMENT YEAR 1994-95, WHEREIN THE ASSESSEE HAS RAISED THE FOLLOW ING GROUNDS OF APPEAL:- 1. CIT(A) ERRED IN CONFIRMING RS. 80,000/- ADDITION S BEING SHORTAGE IN BILL OF LANDING AND ACTUAL IMPORT. 2. LEARNED CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF THE EXPENSES OF WAGES, POWER AND FUEL, FOREIGN TRAVELIN G OF DIRECTOR, CONVEYANCE, OFFICE EXPENSES, COMMISSION AND BROKERA GE ETC. AMOUNTING TO RS. 6,72,044/- BY THE ASSESSING AUTHOR ITY ON AD- HOC BASIS. 2. AT THE TIME OF HEARING BEFORE US, THE LEARNED AR HAS NOT PRESSED GROUND NO.1, THEREFORE, THE SAME IS DISMISSED AS NO T PRESSED. ITA NO.6964/M/06 NIKHIL ALLOYS STEEL P. LTD.. 2 3. BRIEFLY THE FACTS RELATING TO GROUND NO. 2 ARE T HAT THE AO DISALLOWED OUT OF VARIOUS EXPENSES, WHICH ARE DETAI LED AS UNDER:- (RS.) A. WAGES 25,000/- B. POWER & FUEL 30,000/- C. FOREIGN TRAVELLING BY DIRECTOR 3,72,044/- D. CONVEYANCE 20,000/- E. OFFICE EXPENSES 25,000/- F. COMMISSION & BROKERAGE 2,00,000/- 6,72,044/- ========= 4. THE AO DISALLOWED THE SAID EXPENSES OBSERVING TH AT NO SUPPORTING VOUCHERS WERE PRODUCED IN RESPECT OF CL AIM BY THE ASSESSEE AND THE BOOKS OF ACCOUNT WERE INCOMPLETE D URING THE COURSE OF SEARCH PROCEEDINGS. THE AO REJECTED THE BOOK RES ULTS OF THE ASSESSEE. THE CIT(A) CONFIRMED THE ORDER OF THE AO BY OBSERVING THAT VARIOUS EXPENSES CLAIMED BY THE ASSESSEE WERE ON HI GHER SIDE AND NO DOCUMENTARY EVIDENCE IN SUPPORT OF EXPENSES WERE FI LED. 5. AT THE OUTSET THE LEARNED AR SUBMITTED THAT IN E ARLIER YEAR FOR AYS 1992-93 & 1993-94 VIDE ITA NOS. 6962 & 6963/MUM /06 ORDER DATED 13 TH JULY, 2009. THE RELEVANT FINDING OF THE ITAT IS RE PRODUCED FROM PARA 29 AS UNDER:- 29. FOR THE ASSESSMENT YEAR 1992-93 WE HAVE RESTORE D THIS ISSUE TO THE FILE OF THE AO FOR THE PURPOSE OF FRES H DECISION AFTER VERIFICATION OF THE DETAILS OF THE EXPENSES. WE ACC ORDINGLY RESTORE THE ISSUE FOR THIS YEAR ALSO TO THE FILE OF THE AO FOR THE PURPOSE OF VERIFICATION OF THE CLAIM OF THE ASSESSEE ABOUT TH E EXPENDITURE INCURRED ON MINOR CHILDREN. THE DISALLOWANCE SHALL BE RESTRICTED TO THE EXPENDITURE ATTRIBUTABLE TO MINOR CHILDREN O F THE TWO DIRECTORS. IN CASE ACTUAL EXPENDITURE ON MINOR CHIL DREN IS NOT AVAILABLE, THE AO SHALL BE AT LIBERTY TO ESTIMATE T HE EXPENDITURE FOR DISALLOWANCE. WE DIRECT ACCORDINGLY. ITA NO.6964/M/06 NIKHIL ALLOYS STEEL P. LTD.. 3 6. AFTER HEARING THE LEARNED DR, WE FIND THAT IN EA RLIER YEARS THE ISSUE IS SENT BACK TO THE FILE OF THE AO FOR FRESH DECISION. SINCE FACTS ARE STATED TO BE IDENTICAL, THEREFORE, WE DEEM IT F IT AND PROPER TO REMIT THE ISSUE BACK TO THE FILE OF THE AO WITH A DIRECTI ON TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING REASO NABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. IT MAY BE MENTIONED HER E THAT IF THE ASSESSEE FAILED TO SUPPORT ITS CLAIM BY NECESSARY M ATERIAL/EVIDENCE, THE AO IS AT LIBERTY TO REPEAT THE ADDITION IN ACCO RDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ON THIS 7 TH DAY OF MAY, 2010 SD/- SD/- (D. MANMOHAN) (A.L. GEHLOT) VICE PRESIDENT ACCOUNTAN T MEMBER DATED: 7 TH MAY, 2010 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, B BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV ITA NO.6964/M/06 NIKHIL ALLOYS STEEL P. LTD.. 4 S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON 22.4.10 SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR 23.4.10 SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER